Uwaleke urges FG to invest N1.1trn palliatives on sustainable jobs
President, Association of Capital Market Academics of Nigeria (ACMAN), Prof. Uche Uwaleke has called on the Federal Government to utilise the N1.1 trillion fuel subsidy removal palliatives on sustainable jobs across the 774 local government areas in the country.
President Bola Tinubu on Wednesday in a letter to the National Assembly proposed amendment of 2022 Supplementary Appropriation Act with the aim of enabling the Federal Government secure N500 billion to be utilized for palliative measures.
Explaining how he arrived at the N1.1trillion palliatives, Uwaleke in a chat with WESTERNPOST said: “Reports say Nigeria has secured $800 million from the World Bank as a soft loan to cushion the impact of subsidy removal (expected to be distributed as cash to about 10 million households).
“If we add this N500 billion to the N600 billion (assuming I & E average rate of N750 applied to the World Bank’s facility), that should give N1.1 trillion.
“An optimal way to ameliorate suffering is via sustainable jobs. So, this money can be utilised as initial capital to establish massive skill acquisition centres in every LGA. The construction of these centres will generate huge job opportunities in the LGAs and help to reverse rural-urban migration.
“The management of the funds will be done by the communities themselves using traditional and religious institutions. In the area of mass transit schemes, the government should partner the private sector to address the challenge.”
He noted that the request by the President to the National Assembly to utilize N500 billion for palliatives to cushion the impact of the fuel subsidy removal is in order and urged the lawmakers to give it favourable consideration as speedily as possible.
“Although the nature of the palliatives was not indicated, as much as possible, the government should look into the direction of non-cash palliatives in the utilisation of such funds.
“Consistent with the principle of maximum social benefit in public expenditure, one way, in my view, to ensure this money reaches the grassroots is to divide it by 774 which translates to about N1.4 billion and transfer this sum to each local government,” he noted.
